Insurtech Global Outlook 2024: NTT DATA's 2024 Industry Insights and Recommendations

Industry Momentum

It is important to recognize that the insurance industry is changing at a rapid pace, and this is particularly due to the uncertain and unpredictable contexts plus the rise of Insurtech companies disrupting the market and provoking large scale changes such as technological advances and digital transformation on a global scale. Within the industry, it has become clear that for both Incumbents & Insurgents, like Insurtechs or Tech Titans, to succeed in serving consumers and addressing the challenges of the current context it is necessary to form partnerships and create collaborative ecosystems.

NTT DATA recognizes that this is the right time for insurers to continue their transformation efforts in collaboration with the rest of stakeholders. In developing this new report, we have leveraged the industry knowledge of our experts and their ability to deliver solutions tailored to the current needs of the industry.

Crafting the Evolution of the Industry: Navigating Three Waves of Innovation

The evolution of the Insurtech market can be effectively categorized into three waves of innovation that we called: Digital Insurance, Connected Insurance and Generative Insurance.

The first wave of innovation in the insurance industry, driven by digitalization, has seen Insurtech companies not only entering the market but also transitioning towards profitability and sustainability in their businesses. The second wave, led by real-time data, is witnessing a shift from traditional protection-based models to proactive prevention strategies and personalized customer approaches. And finally, the third wave, emerged by the Generative Artificial intelligence, is assisting insurance companies to generate high impact models in society, all while complying with regulation and ethics.

NTT DATA is poised to assist insurers in overcoming industry challenges by providing valuable insights and recommendations. We understand the importance of interpreting risks and opportunities within heavily regulated environments marked by increased complexity for our insurance clients. Moreover, we acknowledge the transformative potential of emerging technologies, like generative AI, in helping insurers anticipate future business models or opportunities for risk mitigation.

Conclusions

The shift towards collaboration between incumbents & Insurtech's represents a significant paradigm change within the industry, providing the opportunity to face pressing issues head on. The industry's future lies in agile approaches and collaborative mindsets, as outlined by NTT DATA's findings.

Overall, this report sets out to ensure industry stakeholders as well as Insurtechs are well-equipped to embrace the upcoming opportunities and meet the challenges of the evolving Insurtech landscape.

About NTT DATA

NTT DATA is a $30+ billion trusted global innovator of business and technology services. We serve 75% of the Fortune Global 100 and are committed to helping clients innovate, optimize and transform for long-term success. We invest over $3.6 billion each year in R&D to help organizations and society move confidently and sustainably into the digital future. As a Global Top Employer, we have diverse experts in more than 50 countries and a robust partner ecosystem of established and start-up companies. Our services include business and technology consulting, data and artificial intelligence, industry solutions, as well as the development, implementation and management of applications, infrastructure, and connectivity. We are also one of the leading providers of digital and AI infrastructure in the world. NTT DATA is part of NTT Group and headquartered in Tokyo. Visit us at nttdata.com